H&M reports SEK 6.04 billion operating profit: H&M stock gains 1.32 percent

Published on 10/19/2026 at 10:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Operating margin reached 10.60 percent in the third quarter. H&M stock costs EUR 15.38 on October 19, 2026, 1.32 percent above the Xetra close.

Profitability and sales evidence

Operating profit reached SEK 6,037 million in the third quarter reported on September 24, 2026.
September sales were expected to increase 1 percent in local currencies.
H&M stock trades at EUR 15.38 at 10:36 a.m. CEST at Lang & Schwarz on October 19, 2026, 1.32 percent above the Xetra close of October 16, 2026.
The next reporting date is January 28, 2027.

H & M Hennes & Mauritz AB, SE0000106270, Illustration mit AI erstellt.

H&M stock (ISIN SE0000106270) trades at EUR 15.38 at Lang & Schwarz on October 19, 2026 at 10:36 a.m. CEST, up 1.32 percent versus the Xetra close of October 16, 2026 at EUR 15.18. The move follows H&M's latest quarterly report, which showed stronger profitability but only modest sales growth.

Profit improves on tighter costs

In its report dated September 24, 2026, H&M Group said third-quarter operating profit rose to SEK 6,037 million from SEK 4,914 million in the same quarter of 2025. That lifted the operating margin to 10.60 percent from 8.60 percent, although the company said the margin benefited from a one-time tariff and goods-import effect of 1.60 percentage points.

Net sales reached SEK 57,189 million in the quarter, compared with SEK 57,017 million a year earlier. Sales in local currencies increased 1 percent, while September sales were expected to rise 1 percent year over year in local currencies. The figures show the central tension for H&M: cost control is lifting earnings faster than demand is lifting revenue.

What does the margin mean?

The margin improvement was stronger than the sales result. The Daily Star reported that H&M's operating profit exceeded the LSEG analyst forecast of SEK 5,140 million, while the reported gross margin of 54.00 percent was above the 53.40 percent expectation, partly because of tariff refunds.

H&M's nine-month figures also point to a wider earnings improvement. Operating profit reached SEK 13,462 million for the period ended August 31, 2026, up from SEK 12,031 million, while operating cash flow rose to SEK 26,524 million from SEK 22,714 million, according to H&M Group. The counterweight is sales: nine-month revenue was SEK 161,624 million, down from SEK 169,064 million, although local-currency sales were unchanged.

Next results date is January 28

The next reporting date is January 28, 2027, according to Simply Wall St. That date will put the emphasis back on whether sales growth can catch up with the improvement in margins and cash generation.

Stock trades above the Xetra close

The H&M share was trading at EUR 15.38 at Lang & Schwarz on October 19, 2026 at 10:36 a.m. CEST, 1.32 percent above the Xetra close of October 16, 2026 at EUR 15.18. H&M is listed on Nasdaq Stockholm, and its current market capitalization is EUR 24.5 billion as of October 19, 2026.

The further course of trading is shown by the continuously updated real-time quote of H&M stock.